China agrees to cut hybrid car exports to the European Union

China agreed last Friday to curb exports of hybrid vehicles to the European Union, a decision that would halt the flow of millions of Chinese vehicles into the European market in the coming years, EU Trade Commissioner Maroš Šefčovič announced. Beijing also agreed to apply reduced tariffs on a range of products with a total value of approximately $4.49 billion, representing a tariff saving of $252.4 million, according to the commissioner during a press conference at the end of two days of high-stakes talks in the Chinese capital. Šefčovič clarified that the products in question mainly include auto parts, olive oil, and foodstuffs, as reported by the Agence France-Presse. The European Union had threatened strict measures in the absence of tangible results, while China had warned it would retaliate; Šefčovič’s visit aimed to avoid escalation. The joint statement issued after the talks underscored both sides’ desire to continue and deepen dialogue, and appeared to dispel the risk of an immediate open confrontation amid rising tariffs and other restrictions. First step Šefčovič noted that the outcomes of the talks would be presented to European heads of state and government at a summit in Brussels next week, adding that they would make the final decision on the next steps. Speaking to journalists, he said it was a crucial first step, but only the first step in a process of rebalancing trade relations.